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Since the various boundaries affecting the subject properties is important to the Council’s considerations, a larger scale version of Figure 2 from the February 20 agenda report is included as Attachment 1 to this memo, to show the various boundaries more clearly. Note that Livermore’s SOI boundary is coterminous with Pleasanton’s SOI, with Livermore’s SOI encompassing the area to the north and east of the boundary; and Pleasanton’s SOI the area to the south and west. Summary of Analysis and Recommendation As outlined in the February 20 Agenda Report, staff is supportive of Livermore’s request, for the following reasons: • SMP-39 is outside of Pleasanton’s voter-approved Urban Growth Boundary, but within Livermore’s UGB. The UGB generally reflects the area desired or anticipated to represent the outer limit of urbanized development of the city, as endorsed by the voters. SMP-40 is also within Livermore’s UGB, as well as its SOI. • SMP-39 and 40 are both contiguous to the current Livermore City limit, whereas neither are contiguous to the Pleasanton City limit. Even if the 20-acre Steelwave property (which lies within Pleasanton’s SOI and UGB); and SMP-38 were annexed, SMP-39 would still not be contiguous to the new Pleasanton City limit because several other properties separate them. • SMP-39 and 40 would not be able to be readily served by utilities from Pleasanton, which currently terminate north of Arroyo Mocho and west of El Charro Road. Conversely, due to the adjacency of incorporated Livermore, utilities can be extended relatively easily from Livermore to both properties from the north or east. For the reasons noted above, it is unlikely that SMP-39 or 40 would ever be developed in Pleasanton; thus, unlikely that Pleasanton would ever have benefitted from any new tax revenue associated with these parcels. Based on consideration of all existing and probably future boundaries, in staff’s view it is logical and appropriate for the properties to be annexed and developed in Livermore. Page 14 of 228